Quick charity verification for Red Clay Dance Company Inc (EIN: 208974539)
Verdict: Red Clay Dance Company Inc appears trustworthy
88/100Mission Score
$839KRevenue
$564KAssets
2Red Flags
4Strengths
Red Flags
Operating deficit in the most recent filing (202306) where expenses ($1,117,851) exceeded revenue ($953,187).
Significant increase in liabilities to $548,650 in 2023, which is nearly half of total assets.
Strengths
Consistent 0% officer compensation reported across all filings, indicating high efficiency in executive pay.
Substantial asset growth from $94,533 in 2020 to $1,095,061 in 2023, demonstrating financial stability.
Significant revenue growth over the past decade, from $106,814 in 2014 to $953,187 in 2023.
Strong surplus in 202206, with revenue ($1,562,748) significantly exceeding expenses ($952,500).
Spending Breakdown
How Red Clay Dance Company Inc allocates its funds across programs, administration, and fundraising.
85%
Program Spending
Healthy — majority goes to mission
10%
Admin Costs
Reasonable — admin costs in check
5%
Fundraising
Within typical range
How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.
How to Interpret This Report
What Red Flags Mean
Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.
What Mission Score Measures
The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.
Using This Data for Donation Decisions
Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.
Frequently Asked Questions about Red Clay Dance Company Inc
Is Red Clay Dance Company Inc a legitimate charity?
Based on AI analysis of IRS 990 filings, Red Clay Dance Company Inc (EIN: 208974539) appears trustworthy. Mission Score: 88/100. 2 red flags identified, 4 strengths noted.
Is Red Clay Dance Company Inc a good charity to donate to?
Red Clay Dance Company Inc has a Mission Score of 88/100. Revenue: $839K. Assets: $564K. Review the full transparency report for detailed spending breakdown and executive compensation analysis.
What is the EIN for Red Clay Dance Company Inc?
The Employer Identification Number (EIN) for Red Clay Dance Company Inc is 208974539. This is the unique tax ID assigned by the IRS.
What is a Mission Score?
The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.
How does Red Clay Dance Company Inc spend its money?
Red Clay Dance Company Inc allocates 85% to programs, 10% to administration, and 5% to fundraising. Healthy nonprofits typically spend 75%+ on programs.
How can I verify Red Clay Dance Company Inc's tax-exempt status?
You can verify Red Clay Dance Company Inc's tax-exempt status using EIN 208974539 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.
AI Transparency Report
Red Clay Dance Company Inc demonstrates a fluctuating but generally improving financial trajectory. While the organization experienced a deficit in the most recent filing period (202306) with expenses exceeding revenue by over $160,000, this follows a significant surplus in the prior year (202206) where revenue outpaced expenses by over $600,000. The organization's assets have grown substantially, from $94,533 in 2020 to over $1 million in 2023, indicating a stronger financial foundation. The consistent reporting of 0% officer compensation across all available filings suggests a commitment to directing funds towards its mission rather than executive salaries, which is a positive indicator of financial transparency and efficiency.
The organization's spending efficiency appears to be strong, particularly given the absence of reported officer compensation. The growth in assets and revenue over the past few years, despite some year-to-year volatility, suggests effective fundraising and program delivery. The significant increase in liabilities in 2023 to $548,650, while assets also grew, warrants monitoring to ensure sustainable financial management. Overall, Red Clay Dance Company Inc exhibits a healthy program focus and good transparency regarding executive pay, though managing revenue fluctuations and liabilities will be key for long-term stability.